Awesome Products Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas: $\begin{array}{ll}
\text { Activity Area } & \text { Cost Driver and Rate } \
\text { Order cost } & \$ 120 \text { per purchase order } \
\text { Defective units } & \$ 200 \text { per unit internal failure costs } \
\text { Delivery trips } & \$ 5 \text { per delivery mile } \
\text { Carrying cost } & \$ 1 \text { per order }
\end{array}$ $\text { The following supplier information is given: }$
$\begin{array}{lrr}&X3&Y2&Z1\
\text { Materials units needed } & 100,000 & 100,000 & 100,000 \
\text { Actual purchase price } & \$ 5 & \$ 4.99&\$5.01 \
\text { Number of purchase orders } & 20 & 30&18 \
\text { Number of defects } & 6 & 12 &0\
\text { Number of deliveries } & 20 & 30&18
\end{array}$
Which supplier has the most defective units?

Question

Quizplus · Accepted Answer

Supplier Y2 has the most defective units with a total of 12 defects.

Awesome Products Company Manufactures a Product Sold to Retailers The following supplier information is given: \text { The following supplier information is given: } The following supplier information is given:

Awesome Products Company Manufactures a Product Sold to Retailers $\text { The following supplier information is given: }$